What will happen if 20% tarrifs get imposed by Trump?
06-24-2018, 04:48 PM
#11
The X5 I once owned was pretty solid.
Another thing people have to realize in the US that the reason why US vehicles don't sell well in Europe (and Germany in particular) are NOT the tariffs. The US manufacturers simply don't offer vehicles that are attractive to the environment and circumstances in Europe. The average vehicle is simply smaller in Germany and has a better MPG-rating. No matter if there is a tariff or not, people won't be driving Dodge pick-ups or Grand Cherokee HEMIs in Germany's major cities (or anywhere, that is). If US manufacturers want to be successful over there, they either have to offer luxury vehicles that are technically top notch (like BMW, Mercedes or Audi) OR they have to offer smaller, green vehicles. What we have on our streets here in the US will NEVER make it to Germany 1:1. First of all, gas costs a fortune and big gas-guzzlers are frowned upon by society. Believe it or not, a vehicle like the Q7 would already fall into that category although it certainly isn't the biggest vehicle you can get in the US by any means.
Another thing people have to realize in the US that the reason why US vehicles don't sell well in Europe (and Germany in particular) are NOT the tariffs. The US manufacturers simply don't offer vehicles that are attractive to the environment and circumstances in Europe. The average vehicle is simply smaller in Germany and has a better MPG-rating. No matter if there is a tariff or not, people won't be driving Dodge pick-ups or Grand Cherokee HEMIs in Germany's major cities (or anywhere, that is). If US manufacturers want to be successful over there, they either have to offer luxury vehicles that are technically top notch (like BMW, Mercedes or Audi) OR they have to offer smaller, green vehicles. What we have on our streets here in the US will NEVER make it to Germany 1:1. First of all, gas costs a fortune and big gas-guzzlers are frowned upon by society. Believe it or not, a vehicle like the Q7 would already fall into that category although it certainly isn't the biggest vehicle you can get in the US by any means.
Yeah, it seems the vast majority of American cars fall right in the middle. Nothing special, but also nothing economical. By our standards in the US, yeah, the Chevy Cruze and all those tiny Fords are "great on gas" but overseas, they're economy is probably very average or still sub-par.
it also doesn't help that when those Euro models come here, we all, myself included, scoff at them as not being "real ___." I don't know how well the 1 series or CLA or A3/Q3 sell in the Us or in Europe, but those seem to be the "Chevys' of Europe. Economical cars wearing the badge of a luxury brand. But in the US, it's just seen as MB trying to reach a market further downstream from their S/E/C class models. And not many people buy them.
I'm sure there's more to it than that, but Euro versions of the 3 or 5 series or C/E class have tiny, eco engines, but the interior is still a step above the base options offered in the US. So they're still getting the far superior engines (economically speaking) and still have a leg-up on the interior quality compared to a similar level of the same US version.
Outside of the muscle and super cars the Americans make, there's not much that makes a European empty their wallet for an American car.
06-25-2018, 05:11 AM
#12
AudiWorld Senior Member
Assuming counter tariffs aren't lifted, all cars will cost more. (almost everything is assembled all over the world anyways).
Thread drift in the reasoning:
The amount of tax paid by all corporations in the history of the world is: $0. Corporations are soulless entities they will always pass the cost of taxes (in any and all countries) onto consumers via higher prices and/or workers via lower wages. If company A has to pay a tax that company B does not the most likely result is company B (or group of companies) most likely raise their prices to increase their profits, its doubly true if the supply chain dictates that absorbing all of A's market share is not possible. (if B is sitting on inventory it likely will not happen).
Case and point I grew up near an Indian reservation, Indians do not have to pay any taxes so their gas stations offered cheaper gas. Despite having like a 30-40 cent per gallon advantage how much cheaper was their gas? 5 cents, sometimes less.
All the same the electric car rebates are not for the consumer its a license for Tesla etc.. to sell their cars for ~$7k more than the market will bear.
Thread drift in the reasoning:
The amount of tax paid by all corporations in the history of the world is: $0. Corporations are soulless entities they will always pass the cost of taxes (in any and all countries) onto consumers via higher prices and/or workers via lower wages. If company A has to pay a tax that company B does not the most likely result is company B (or group of companies) most likely raise their prices to increase their profits, its doubly true if the supply chain dictates that absorbing all of A's market share is not possible. (if B is sitting on inventory it likely will not happen).
Case and point I grew up near an Indian reservation, Indians do not have to pay any taxes so their gas stations offered cheaper gas. Despite having like a 30-40 cent per gallon advantage how much cheaper was their gas? 5 cents, sometimes less.
All the same the electric car rebates are not for the consumer its a license for Tesla etc.. to sell their cars for ~$7k more than the market will bear.
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